Napthine 'asleep at wheel' as car industry crashed, says SA Premier

Richard Willingham and Josh Gordon

Denis Napthine has been accused of being "asleep at the wheel" over the future of the car industry, with his South Australian counterpart accusing him of refusing to acknowledge, in private conversations, the looming closures of Holden and Toyota.

In an extraordinary attack, South Australian Premier Jay Weatherill said he repeatedly tried to convince Dr Napthine that Holden and Toyota were on the brink of closing, but his warnings were dismissed as "unlikely".

Mr Weatherill said he had been trying to build a coalition with a fellow automotive manufacturing state in an effort to convince the Abbott government to help the beleaguered industry. He also argued the closure of Holden meant Toyota would follow.

"Poor old Denis has been asleep at the wheel, while we have been out there promoting the interests of the automotive sector in this nation," Mr Weatherill said. "If he did a little a more to get on board a little earlier we might have been able to avoid the decision by the Commonwealth.

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"I was content to leave his sloth, something that was not a subject of public comment, until he has decided today to wade into the debate."

The comments came after Dr Napthine accused South Australia of being "absolutely recalcitrant" for failing to contribute to a $100 million salvage package for redundant car industry workers announced by Prime Minister Tony Abbott in mid-December.

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"They have been recalcitrant when it comes to putting their hand in their pocket to make a contribution to that fund," Dr Napthine said.

Fairfax Media this week revealed that the fund is in disarray, with Holden, Toyota and South Australia refusing to contribute until they are given details on how the money will be spent. A pair of reviews to chaired by Industry Minister Ian Macfarlane yet to be discussed by federal cabinet, more than a month after the March deadline.

In a letter Mr Macfarlane sent last month, Mr Weatherill warns South Australia will only make a $12 million commitment if the federal government substantially increases its commitment beyond the $60 million federal contribution on offer.

"If you are seeking our commitment of $12 million into a fund into which you are contribution only $60 million, then the South Australian Labor Government will not commit that $12 million," the letter says.

In question time, Labor seized on Mr Weatherill's comments to hound Dr Napthine over his judgment and response to the decline of the car industry.

Dr Napthine said he did not agree with the premise of many of Labor's questions and said his government was proud of its record in fighting for jobs in Victoria, particularly new jobs.

When Toyota announced it was pulling out of Australia in February, the Premier said he was "shocked".

Earlier on Wednesday, the Premier announced 110 new manufacturing jobs had been secured at Brunswick-based printing business PMI. The jobs come on the back of a $2.6 million grant from jointly funded Melbourne's North Innovation and Investment Fund, established in the wake of Ford's decision to cease local manufacturing.

Other business in the region have been sent offer letters for grants in the fund. More announcements are expected soon once contract negotiations are finalised.

A spokesman for Holden said the car company had not yet contributed to the growth fund but would do so once all the details of how the fund would be administered were settled.

"Holden has offered a substantial contribution to the Australian Government's Growth Fund, which was announced following Holden's decision to end manufacturing in Australia. Holden's contribution will be directed to skills and training measures to assist Holden employees in their transition to new careers," the spokesman said.